SINGAPORE: Industry experts said the shortage in the supply of rubber is likely to continue this year due to high global demand. Observers attribute this to the strong growth of manufacturing industries in Asia, coupled with a drop in supply because of bad weather conditions.
The cost of the raw materials has gone up. Industry-watchers said the price of tyres has been increasing 10 per cent every three months, for the past year.
According to local importers and manufacturers, the earthquake in Japan has not affected supply and demand. But for the next few months, importing tyres from Japan may take a longer time.
Still, local traders are confident that they have enough stock to see them through in the near future.
Tay Tiang Guan, Executive Director of YHI International, said: "Tyre distributors in this part of the world, we carry stock. For example in our company, we carry about 90 days (worth of) stock. Unless Japan is going to collapse for the next, even more than 90 days then we probably will be affected."
Some tyre distributors expect prices for tyres to come down only from next year.
(Source: http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1119524/1/.html)
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